(Canadian Press)

Surge in job growth drives unemployment rate down to new 40-year low

The November employment surge was fuelled by the addition of 89,900 full-time positions

A blast of 94,100 new jobs last month has knocked the country’s unemployment rate down to 5.6 per cent — its lowest level since Statistics Canada started measuring comparable data more than 40 years ago.

The overall number marked the labour force survey’s largest monthly increase since March 2012 when there was a gain of 94,000 jobs, Statistics Canada said Friday.

READ MORE: B.C. budget surplus expected to keep growing

The November employment surge was fuelled by the addition of 89,900 full-time positions. For employee work, the private sector added 78,600 positions in November, while the public sector gained 8,300 jobs.

Last month’s increase pushed the jobless rate down from October’s reading of 5.8 per cent, which had been the previous low mark since comparable data first became available in 1976. The old statistical approach — prior to 1976 — registered an unemployment rate reading of 5.4 per cent in 1974.

But Friday’s report also contained disappointing details.

Year-over-year average hourly wage growth for permanent employees continued its decline in November to 1.46 per cent — to deliver its weakest reading since July 2017.

Experts have been expecting wage growth to rise thanks to the tightened labour market, but it has dropped every month since its May peak of 3.9 per cent. It now sits well below inflation.

READ MORE: Bank of Canada holds interest rate at 1.75%

The Bank of Canada keeps a close watch on wages ahead of its interest-rate decisions. On Wednesday, the central bank held its benchmark rate at 1.75 per cent, but in explaining its decision it highlighted other economic negatives such as weaker-than-expected business investment and the sharp drop in oil prices.

Royce Mendes of CIBC Economics said the Bank of Canada will take notice of the “massive reading” in the November jobs report as it mulls next month’s rate decision.

“The large gain in jobs will keep a January rate hike on the table for now, but we’ll need to see similarly positive evidence from other indicators and no major reversal in the next jobs report,” Mendes wrote in a research note to clients Friday.

Statistics Canada’s report Friday also said that, compared to 12 months earlier, employment was up 1.2 per cent following a net increase of 218,800 jobs. The addition of 227,400 full-time positions offset a small decrease in part-time work.

The November jobs report showed the goods-producing sector added 26,900 jobs following a notable gain of 14,800 construction positions. The services sector generated 67,200 jobs last month with help from the addition of 26,000 positions in professional, scientific and technical services.

By region, employment rose in six provinces and was led by gains in Quebec and Alberta.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Auditor general to release ‘executive expenses’ report for Surrey School District

Report is to determine whether employer-paid expenses ‘comply’ with applicable district policies

Grieving South Surrey mom ‘disappointed’ province not moving quicker to fix recovery homes

Min. Judy Darcy says new regulations, effective Dec. 1, follow ‘many horror stories’

B.C.’s health, addictions ministers to announce changes to recovery-house rules

Safety, quality of care targeted; South Surrey parent whose son overdosed ‘curious’ about amendments

North Delta MLA Ravi Kahlon cleared of conflict allegations

Commissioner finds MLA’s father’s taxi licence doesn’t equal a conflict of interest while working on ride-sharing regulations

Surrey school district unveils its first rainbow crosswalk

Superintendent Jordan Tinney says colour crossing ‘a statement that everyone is welcome in Surrey’

Pickle me this: All the outrageous foods at this year’s PNE

Pickled cotton candy, deep-fried chicken skins, and ramen corndogs are just a start

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. father tells judge he did not kill his young daughters

Andrew Berry pleaded not guilty to the December 2017 deaths

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

Mammoth sturgeon catch was ‘a fish of a lifetime’ for Chilliwack guide

Sturgeon was so enormous it tied for largest specimen every tagged and released in the Fraser

Fraser River sea bus proposed to hook into TransLink system

Maple Ridge councillor just wants to start discussion

Rosemount cooked diced chicken linked to listeria case in B.C.

The symptoms of listeria include vomiting, nausea, fever, muscle aches

Body found believed to be missing Chilliwack senior with dementia

Police say case is now in the hands of the coroner

Most Read

l -->